Embracing e-Health: Simplifying Healthcare Administration

Healthcare systems are arguably quite complex. Over the past few years, technology has dramatically improved treatments for a variety of diseases. Likewise, the rise in life expectancy is considered one of the greatest achievements of our time. But despite all these, the administrative part of healthcare is still complicated.

Experts note that administrative complexity in healthcare makes the system prone to error, inefficiencies, and wasteful expenses. In a Forbes article, author Kenneth L. Davis argues that the central component of healthcare in the U.S. needs a major overhaul.

Embracing Software

According to IT experts, adopting software technology is the best way to simplify the system. Today, there are quite some tools that could significantly increase the efficiency of healthcare administration, from payroll, staffing, electronic data interchange (EDI) to inbound/outbound transactions.

Out-of-pocket transactions can also be integrated into the software so that the staff won’t need to waste time and paper to process every patient’s insurance claims. Through sophisticated electronic data interchange (EDI) and data transactions, staff won’t need to contact insurance carriers to confirm every patient’s coverage. This tool could dramatically reduce a hospital or clinic’s administrative costs.

Outsourcing workforce management solutions have laid the groundwork for the healthcare industry to repair its vast and complex system. Strategies are now in place to standardize insurance and data transactions, so that hospital billing departments don’t have to reserve time and extra staff to handle these functions.

Experts stress that by merely simplifying healthcare administration, healthcare will be much more affordable and accessible to many. Billions of dollars are lost to inaccurate insurance claims, miscalculations, and wasteful staffing.

Recently, the government has channeled in massive investments to make communications for all healthcare transactions computer-based in the hopes that it will eventually lower healthcare costs. In a few years’ time, the U.S. will save over $8 billion by computerizing administrative tasks.